How to Maximise Your Budget When Upsizing to a Detached Property

Getting a first foot on the property ladder is a milestone in the lives of those who achieve it. In many cases, however, it isn’t long before those “first-time buyers” are looking to become “second steppers” and upsize to a detached property. New research indicates that in this instance the homeowners would, on average, need to find an additional £50,000 in order to do so. With this in mind, here we explore how to maximise your budget when upsizing to a detached property.  

What the Research Says

The research, carried out by Lloyds Bank shows that for second steppers, who are wanting to upsize to a detached property, there are financial challenges to face. The figures set out in the research suggest that it now costs around £130,000 to move from a first-time buyer’s property, a flat or small house, to a detached house and that in the more expensive parts of the UK, that figure swells to around £330,000.

These figures are based on the average cost of detached properties and take into account the equity that second steppers will have accrued in their first home. Equity makes up around 60% of the additional money required, but after costs this still leaves second steppers needing around £50,000. So how can they maximise their budget?

Maximising Your Budget

Speaking to experts like The Property Buying Company can give homeowners a realistic idea of how much their current property is worth, but they may find that they need to boost their budgets if they are to upsize.

One way to do this effectively is to invest in their current property to boost the equity in it. For example, it is estimated that, on average, spending £20,000 on a loft conversion will add £40,000 to the value of a property. And painting the outside of the house is another sure-fire way of increasing the value, it costs up to £1000 to have the work done, but can add up to £5000 to the asking price.

There are, of course a number of other improvements that can be made, such as installing a new kitchen, however, these two improvements alone can half the additional money needed to upsize to a detached property.

The message to potential second steppers then, is that yes moving to a bigger, detached house is now more expensive than ever, but investing wisely in your current home can cover the additional cost or at the very least, significantly offset them.

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